May 10, 2012, Introduced by Reps. Wayne Schmidt, Zorn and Shaughnessy and referred to the Committee on Commerce.
A bill to amend 1966 PA 346, entitled
"State housing development authority act of 1966,"
by amending section 15a (MCL 125.1415a), as amended by 1994 PA 363.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 15a. (1) If a housing project owned by a nonprofit
housing corporation, consumer housing cooperative, limited dividend
housing corporation, mobile home park corporation, or mobile home
park association is financed with a federally-aided or authority-
aided mortgage or advance or grant from the authority, then, except
as provided in this section, the housing project is exempt from all
of the following:
(a) All ad valorem property taxes imposed by this state or by
any political subdivision, public body, or taxing district in which
the project is located.
(b) Any eligible tax reverted property specific tax imposed
under the tax reverted clean title act, 2003 PA 260, MCL 211.1021
to 211.1026, if the land bank fast track authority created under
the land bank fast track act, 2003 PA 258, MCL 124.751 to 124.774,
that would otherwise receive revenue under section 5 of the tax
reverted clean title act, 2003 PA 260, MCL 211.1025, from that
specific tax approves the exemption under this subdivision.
However, the municipality shall pay to that land bank fast track
authority 50% of the service charge in lieu of taxes collected
under subsection (3) from the owner of the housing project for each
year the housing project would have been subject to the eligible
tax reverted property specific tax but is exempt under this
subdivision.
(2) The owner of a housing project eligible for the exemption
shall file with the local assessing officer a notification of the
exemption, which shall be in an affidavit form as provided by the
authority. The owner shall first submit the completed affidavit
form
first shall be submitted to the authority for certification by
the authority that the project is eligible for the exemption. The
owner then shall file the certified notification of the exemption
with the local assessing officer before November 1 of the year
preceding the tax year in which the exemption is to begin.
(3) (2)
The owner of a housing project
exempt from taxation
under this section shall pay to the municipality in which the
project is located an annual service charge for public services in
lieu
of all taxes. Subject to subsection (6), (7), the amount to be
paid as a service charge in lieu of taxes shall be for new
construction projects the greater of, and for rehabilitation
projects the lesser of, the tax on the property on which the
project is located for the tax year before the date when
construction or rehabilitation of the project was commenced or 10%
of the annual shelter rents obtained from the project. A
municipality, by ordinance, may establish or change, by any amount
it chooses, the service charge to be paid in lieu of taxes by all
or any class of housing projects exempt from taxation under this
act. However, the service charge shall not exceed the taxes that
would
be paid assessed but for this act.
(4) (3)
The exemption from taxation granted
by this section
shall remain in effect for as long as the federally-aided or
authority-aided mortgage or advance or grant from the authority is
outstanding, but not more than 50 years. The municipality may
establish by ordinance a different period of time for the exemption
to remain in effect.
(5) (4)
Except as otherwise provided in
this subsection and
subsection (1)(b), any payments for public services received by a
municipality in lieu of taxes under this section shall be
distributed by the municipality to the several units levying the
general property tax in the same proportion as prevailed with the
general property tax in the previous calendar year. For payments in
lieu of taxes collected after June 30, 1994, the distribution to
the several units shall be made as if the number of mills levied
for local school district operating purposes were equal to the
number of mills levied for those purposes in 1993 minus the number
of
mills levied under the state education tax act, Act No. 331 of
the
Public Acts of 1993, being sections 211.901 to 211.906 of the
Michigan
Compiled Laws, 1993 PA 331,
MCL 211.901 to 211.906, for
the year for which the distribution is calculated. For tax years
after
1993, the amount of payments in lieu of taxes to that would
otherwise be distributed to a local school district for operating
purposes
under this subsection shall not be distributed to the
local
school district but instead shall
be paid to the state
treasury and credited to the state school aid fund established by
section 11 of article IX of the state constitution of 1963.
(6) (5)
Notwithstanding subsection (1), If
a municipality may
provide
provides by ordinance that the tax exemption established in
subsection
(1) shall does not apply to all or any class of housing
projects
within its boundaries, to which subsection (1) applies. If
the
municipality makes that provision, the tax exemption
established
in subsection (1) shall that
tax exemption does not
apply to the class or classes of housing projects designated in the
ordinance. If the ordinance so provides, the ordinance shall be
effective with respect to housing projects for which an exemption
has
already been granted, on but
not before December 31 of the year
in
which the ordinance is adopted. , but not before. A municipality
that has adopted an ordinance described in this subsection may
repeal that ordinance, and the repeal shall become effective on the
date designated in the repealing ordinance.
(7) (6)
Notwithstanding subsection (2), (3), the
service
charge to be paid each year in lieu of taxes for that part of a
housing project that is tax exempt under subsection (1) and that is
occupied by other than low income persons or families shall be
equal to the full amount of the taxes that would be paid on that
portion of the project if the project were not tax exempt. The
benefits of any tax exemption granted under this section shall be
allocated by the owner of the housing project exclusively to low
income persons or families in the form of reduced housing charges.
(8) (7)
For purposes of this section only,
"low income persons
and families" means, with respect to any housing project that is
tax exempt, persons and families eligible to move into that
project. For purposes of this subsection, the authority may
promulgate rules to redefine low income persons or families for
each municipality on the basis of conditions existing in that
municipality.
(9) (8)
This state shall not reimburse any
unit of government
for a tax exemption granted to any housing project under this
section.